Tax Jurisdiction Code to be derived from Vendor Master

[former_member190990]

Hi Experts,

We have a case where in the requirement is to derive Tax Juris Code from the Vendor Master overriding the one in the Plant.

Please advise.

Regards,

Akash Prekar

[randellmendes]

Akash,

You may find this SAP note a good reference. It does not solve your problem but provides a good overview on how tax jurisdiction code is handled within the system and also provides a couple of options for enhancements.

501054 - FAQ: Taxes in purchasing

-Randell

[former_member190990]

Hi Randell,

Thanks for the mail, I have already checked it, and thats why I have raised a question if the requirement could be fulfilled?

Regards,

Akash Prekar

[JL23]

Can you elaborate your requirement, for me is a vendor in general much different than a plant. I see the vendor as the supplier of goods and a plant as the receiver of goods, they are 2 different parties in a business process and hence they have 2 different jurisdiction codes.

If you talk about STO customizing and assignment of vendor, then I wonder for what reason they would even have different jurisdiction codes, as they represent then one and the same party.

[former_member190990]

HI Jurgen,

Thanks for the mail, the requirement is to derive the tax jurisdiction code from the vendor master whenever the same plant procures from vendors belonging to different regions within the same country code.

This is not an STO scenario. The process is that the same plant procures from a vendor having jurisdiction code x and another vendor y. Since we have the same plant in PO, the jurisdiction code is derived from the plant which is x. The requirement is that if the second vendor is used in PO, the jurisdiction code in PO should be y rather than x.

Hope this gives more clarity on the requirement. Please add your comments.

regards,

akash

[JL23]

unfortunately not.

Where do you have this requirement? Do you need to print this on a customized form? Is it wrong determined today?

What has your plant to do with a jurisdiction code of a vendor?

[former_member190990]

HI Jurgen,

The issue is with the Invoice as the tax calculated and paid is based on Plant based Jurisdiction code. They want the tax to be calculated based on the Vendor Jurisdiction code in Invoice And paid to vendor based on the vendor jurisdiction code.

I guess this is a wrong approach and wrong concept of the usage of Jurisdiction code. Need your confirmation and comments.

Regards,

Akash Prekar

[JL23]

If you talk about taxes then you have to be very specific and need to name the country.

In general it is the jurisdiction from the seller (your vendor) that has to be used, but there may be some specific rules.

From this point of view there might be something wrong in your setup if the jurisdiction code of your plant is pulled.

For more clarity on the law you may want to read this article from Canada: Invoice Form FAQ - Canada

How to enter such invoices in SAP is explained in detail in help.sap.com, easy to find with this string in Google: invoice jurisdiction code site:help.sap.com

[former_member190990]

I was confused with SAP Note 501054:FAQ: Taxes in purchasing, where the sources of determining Tax Jurisdiction Code is : Reference item, request for quotation, contract, plant, the account assignment object. Vendor is not related here.

Our case is that the Vendor country/region is CA/QC (Tax Jur Code: CAQC) and the Plant country/region is CA/BC (Tax Jur Code: CAQC). But the PO is taking CABC (from the Plant).

As per the link provided by you, it reflects on my scenario where the goods are received and used in Plant region. So it is absolutely fine, if the Tax Jur Code is applied on basis of Plant?

[JL23]

Such question should be raised based on the the specific business case with the responsible people from your tax department.

The SAP note explains how the SAP design is, from where the defaults for the purchase order is coming and where it can be overwritten, it even offers an option with a BADI to manipulate the determination.

Tax is not that straight forward like we all wish it to be. In general I agree it should come from the plant, but you actually raised the requirement that it shall be from the vendor. So there might be a certain business case that may require an exception from the rule, maybe because you pickup the goods instead of getting it delivered.

[former_member190990]

Thanks for your suggestion!